AIG TO BUY SUNAMERICA
FOR $18 BILLION IN STOCKNEW YORK - American International Group has agreed to buy SunAmerica Inc., a major player in the annuities business, for more than $18 billion in stock.
The proposed transaction is the second-biggest ever in the U.S. insurance industry and the latest megadeal in the consolidating financial-services industry.
SunAmerica had 1997 revenue of about $2.1 billion and net income of $379 million.
The agreement launches AIG, best known for its global commercial property-casualty lines and life-insurance products, into the arena of financial services for individual investors.
SunAmerica is expected to continue to be based in Los Angeles, using the SunAmerica name.
GENERALI OFFERS PAYMENT
FOR HOLOCAUST-ERA CLAIMS
NEW YORK - Italian insurance company Assicurazioni Generali SpA has said it will contribute $100 million to settle Holocaust-era insurance claims.
Generali offered the sum to settle a class action suit brought by Jews whose insurance policy claims were denied by the insurer after the war.
The settlement releases Generali from further liability, according to attorneys who presented the suit to federal district judge Michael Mukasey for final approval.
''This settlement will ensure substantial relief to survivors of the Holocaust and their heirs in the most timely manner possible,'' Guido Pastori, Vice General Director of Generali, said in a statement.
Earlier this month, Swiss insurer Zurich Insurance Co. also agreed to resolve the outstanding insurance claims of Holocaust victims.